Where will all the money come from to fund the stimulus?

[aus_trader]

Nice discussion ASF troopers.

But I am just wandering, do we also have to join the devaluation game and make AUD worthless as well or is there a better way forward ? In other words is there a better alternative to shiitty MMT ?

 

[wayneL]

Nice discussion ASF troopers.

But I am just wandering, do we also have to join the devaluation game and make AUD worthless as well or is there a better way forward ? In other words is there a better alternative to shiitty MMT ?

Creative destruction, via one if the more libertarian schools... More painful in the short run, but better in the end IMO

 

[aus_trader]

Creative destruction, via one if the more libertarian schools... More painful in the short run, but better in the end IMO

Agree. But my worry is that pain part... could last a very long time, perhaps for many decades which means I may not get to see that end bit in my lifetime.

How should we position ourselves ?, other than burying some Gold in the backyard which I have heard a thousand times and still not doing it (Surely I'll ask to put that Midas touch in my grave in my will for future inheritors )

 

[qldfrog]

We need electro shock to get rid of the laggards and start anew..will not happen..
start anew would mean pushing against big businesses monopoly..real capitalism..and against the welfare state and regulatory mindset
So neither LNP or Labour
Good luck...
Capitalism ends in monopolies..fair and normal.
to enjoy the benefits of capitalism, you need the energy of new entrants, either via technology making monopolies and lobbies obsolete, or just cartel destruction phase.
Neither is happening now: we are missing a unique opportunity for a beneficial Reset, the reset we see is an acceleration of freedom removing, universal western world socialism now bordering on communism with mass alienation and propaganda: fear hate: Virus then China.
We will not need to reimburse anything we will default but as a group

 

[SirRumpole]

I think Fried Burger has just destroyed the government/ union alliance by harking back to Thatcher/Reagan days.

Their supply side policies are oudated because of automation and technology.

They will put millions out out work without the money to spend on what the machines may produce
.

Trickle down economics has had its day.

 

[aus_trader]

Interesting article on how MMT is keeping everything propped in every crisis...


https://www.theage.com.au/business/...another-financial-crisis-20200728-p55g5i.html

 

[Garpal Gumnut]

We need electro shock to get rid of the laggards and start anew..will not happen..
start anew would mean pushing against big businesses monopoly..real capitalism..and against the welfare state and regulatory mindset
So neither LNP or Labour
Good luck...
Capitalism ends in monopolies..fair and normal.
to enjoy the benefits of capitalism, you need the energy of new entrants, either via technology making monopolies and lobbies obsolete, or just cartel destruction phase.
Neither is happening now: we are missing a unique opportunity for a beneficial Reset, the reset we see is an acceleration of freedom removing, universal western world socialism now bordering on communism with mass alienation and propaganda: fear hate: Virus then China.
We will not need to reimburse anything we will default but as a group

I don't care what system we have as long as I end up with an Arnage, a house on the hill and the ability to spend OPM.

gg

 

[SirRumpole]

I don't care what system we have as long as I end up with an Arnage, a house on the hill and the ability to spend OPM.

gg

Better join the Commo Party quick comrade, leadership positions are running out fast.

 

[sptrawler]

Agree. But my worry is that pain part... could last a very long time, perhaps for many decades which means I may not get to see that end bit in my lifetime. )

This article explains it well, but as usual doesn't explain how to fix it, Australia's standard of living and welfare system has improved hugely since the 1960's.
But Australia's first world economy which funded it, has slowly slid down the slope since the 1970's, how we push it back up the slope without pain is very difficult.
What has to be remembered is, we signed the Lima agreement and reduced tarrifs etc, that got us here.IMO
https://www.abc.net.au/news/2020-07...ust-improve-lives-of-all-australians/12493668
From the article, pertinent points IMO:
*The reasons we have arrived here.
Deregulation of the financial system and vast parts of the economy, along with the removal of trade barriers, has boosted global economic growth and, in the space of little more than one generation, transformed once-impoverished nations, particularly throughout Asia, into economic powerhouses.
But economics, like many things in life, is all about balance.
Once that delicate equilibrium shifts too far from the centre, a rapid and violent reversal often takes place, a phenomenon we now are witnessing in the political sphere across the developed world.
While Australia remains a far more egalitarian society, several million, through no fault of their own, suddenly have found themselves being supported by the state for the first time.

*Where we are.
Waning consumption and stagnating retail sales forced the Reserve Bank to cut interest rates three times last year.
Add in an overreliance on a handful of raw materials to mainly one market, China, as a source of export income and we were vulnerable to an economic shock.
Also missing are the strikes and industrial disputes that accompanied that militant period and disrupted business and the economy.
The idea the Australian workforce is inflexible is a misrepresentation.
Around a quarter of Australian workers are casuals. Business lobby groups argue that has been the case for 25 years and they're right.
But go back a little further, to the early 1980s, and only 13 per cent of the workforce was casual.
*
How do we get back to where we started pre the Lima agreement and deregulation?
Globalisation and trade liberalisation transferred entire industries from developed nations into the growth economies of Asia and particularly China.
Workers ended up with a much lower share of the national income, as this graph from the Reserve Bank shows.
That share has been in decline since the 1970s as wages have undershot the growth in profits.
But improved technology and firms' ability to now employ workers in other countries at much lower rates have also had an impact, while in Australia the strong lift in population and working-age migrants has added to the workforce and lifted competition for labour.
*
So how do we get back to where we started?????????????????
(my bolds in the above text)
Increase wages?
increase taxes?
Apply tarrifs to companies that don't bring manufacturing back.
Subsidies manufacturing?
Devalue our currency, so that our wages and construction costs are similar to competing Countries and our home produced product is as cheap as the imported?

 

[Garpal Gumnut]

Better join the Commo Party quick comrade, leadership positions are running out fast.

I repeat.

I don't care what system we have as long as I end up with an Arnage, a house on the hill and the ability to spend OPM.

Also politics is like trading never enter too early nor leave too late.

Communism/Capitalism no difference.

It’s all about gg

gg

 

[tech/a]

I’ve just seen this thread.

As a Sovereign Country we can lend whatever amount we place on the balance sheet.
As a Sovereign Country we can pay it back with a reversal on the same balance sheet.

The Sovereign Country—-any country is in debt to itself.
It can create its own debt and forgive its own debt at anytime.

One of the major reasons the UK wanted to keep its sovereignty
As a member of the EU it could borrow from the EU but would need
to pay any debt off. As a Sovereign Country it can create and forgive its own
debt, can’t do that if your borrowing from a third party.